Lesson in Industrial/ Organizational Psychology

1. Prepared by:
Orlando A. Pistan, MAEd-GC
Psychology Instructor

2. There are five different types of
employment in the Philippines and
they are determined by the nature
and/or existence of activities that an
employee is required to perform.
The employer establishes the terms
and conditions of the employment
contract, which should be structured
according to the legal provisions set
by Philippine labor laws and
regulations.

3. Each type of employee varies, so it's
important to think carefully about
which type of worker will work best
for you.
The five main employment types are:
• Regular/Permanent employment
• Term/Fixed employment
• Project employment
• Seasonal employment
• Casual employment

4. • An employee performs activities that
are usually necessary in the usual
business or trade of the employer.
• They enjoy the benefit of security of
tenure provided by the Philippine
Constitution and cannot be
terminated for causes other than
those provided by law and only after
due process is given to them.
• Required to undergo probationary
employment before qualifying to
become regular employee.

5. • Under Article 281 of the Labor Code of the
Philippines, the maximum length of
probationary employment shall be six (6)
months, and is counted from the date an
employee started working.
• When the employment is not terminated after
the six-month probationary period, it shall then
be considered regular employment.
• It is important to note that the employer must
notify the employee of the probationary period
and the standards they must satisfy on or before
the end of the probationary employment.
• If the employee is not properly notified of the
arrangement, then they are prescribed by law to
be classified as a regular employee from the time
they started working for the company.

6. • The employee renders service for a
definite period of time and the
employment contract must be
terminated after such period expires.
• This type of employment is
determined not by the activities that
the employee is expected to perform
but by the commencement and
termination of the employment
relationship.

7. Fixed-term employment is highly
regulated and is subject to the following
criteria:
• be voluntarily and knowingly agreed
upon by the parties without any force,
improper pressure being brought to
bear upon the employee and absent
any vices of consent; or
• it satisfactorily appears that the
employer and the employee dealt with
each other on more or less equal terms
with no dominance exercised by the
former over the latter.

8. • Project Employment is defined when an
employee is hired for a specific project or
undertaking and the employment
duration is specified by the scope of
work and/or length of the project.
• A project employee may acquire the
status of a regular employee when they
are continuously rehired after the
completion of the project or when the
tasks they perform are vital, necessary,
and indispensable to the usual business
or trade of the employer.

9. • Seasonal Employment is when the
work to be performed is only for a
certain time or season of the year and
the employment is only for that
duration.
• This type is common practice to
Retail, Food and Beverage, Hospitality
and other related industries as
augmentation to their workforce to
cover for the demand during peak
seasons.

10. • A common practice for some
employers is to hire “regular seasonal
employees” who are called to work
during peak seasons (e.g. Christmas
season) and are temporarily
suspended during off-seasons.
• These employees are not separated
from service but are only considered
on Leave of Absence (LOA) without
pay until re-employed.

11. • There is Casual employment when an
employee is engaged to perform a job or
service which is merely incidental to the
business of the employer, and such job or
service is for a definite period made known
to the employee at the same time of
engagement.
• If the employee has rendered service for at
least one (1) year in the same company,
whether the casual employment is
continuous or not, they shall be considered
a regular employee with respect to the
activity they are employed and will
continue rendering service while such
activity exists.

12. Thank you for paying
attention.